Microsoft today announced a $10 billion (approx. ¥1.6 trillion) investment in Japan from 2026 through 2029, built around three pillars: Technology, Trust, and Talent. The commitments include expanding our own in-country infrastructure, collaboration with domestic partners to expand AI infrastructure options within Japan, deepening public-private cybersecurity partnerships with Japan’s national institutions, and training more than one million engineers, developers, and workers across Japan’s most strategically important industries by 2030.
The announcements were made during a visit to Tokyo by Microsoft Vice Chair and President Brad Smith and build on the $2.9 billion investment Microsoft made in Japan in April 2024. Prime Minister Takaichi has made both growth investment in advanced technologies and economic security a national priority. Each commitment Microsoft is announcing today maps directly to Japan’s growth and economic security priorities.
Japan’s AI momentum has accelerated significantly since 2024. According to Microsoft’s AI Diffusion Report, nearly one in five working-age Japanese people now uses generative AI tools — above the global average of roughly one in six. Adoption among Japan’s largest companies has also moved rapidly, with Microsoft 365 Copilot now used by 94 percent of Nikkei 225 firms. Against that backdrop, today’s announcements address specific national needs: the technology investment delivers AI infrastructure that operates within Japan; the trusted partnerships support Japan’s economic security agenda through threat intelligence sharing and capacity building at the level of national institutions; and the talent commitment responds to a projected shortfall of 3.26 million AI and robotics workers by 2040.
“Microsoft is deeply invested in Japan, and today’s announcement will enable us to meet the country’s growing demand for cloud and AI services. We are bringing the world’s best technology, building secure and reliable infrastructure on Japan’s terms, and helping equip its workforce to accelerate productivity and innovation across its economy.”
— Brad Smith, Vice Chair and President, Microsoft
“Microsoft has announced new investments in Japan to support the continued growth of the Japanese economy. Industrial growth and scientific progress are central to strengthening itsnational competitiveness, and these investments are intended to support the “strong economy” outlined by Prime Minister Sanae Takaichi in her policy address. By investing in people and technologies ready for real‑world use—and by helping organizations take steps toward becoming frontier firms—we are focused on moving growth from vision to execution. As a long‑term partner to Japan, Microsoft Japan is committed to fulfilling that responsibility.”
— Miki Tsusaka, President, Microsoft Japan
Technology: Expanding In-Country AI Infrastructure Options
Japan’s most demanding AI workloads — including physical AI in robotics and precision manufacturing, as well as the development of Japan-originated large language models — often require GPU infrastructure managed by domestic operators, with data remaining in Japan. Microsoft is announcing a new collaboration with Sakura Internet and SoftBank to meet exactly that need. Through this collaboration, domestic providers will offer GPU-based AI compute services through Azure, while data residency remains in Japan. This in-country infrastructure provides an important foundation for Japan’s domestic LLM development, where scalable compute and clear governance are essential, and Microsoft Azure’s global capabilities extend into this environment.
“SoftBank is advancing the development of social infrastructure to accelerate the real‑world adoption of AI. We are pleased that our collaboration with Microsoft will expand the range of AI infrastructure options available in Japan. Through this initiative, customers will be able to leverage SoftBank’s AI computing platform from within the Microsoft Azure environment, enabling them to use AI with confidence even in areas that require a high level of confidentiality and data sovereignty. SoftBank will continue to advance the sophistication of AI infrastructure and contribute to Japan’s digital transformation (DX) and the enhancement of its industrial competitiveness.”
— Junichi Miyakawa, President & CEO, SoftBank Corp.
“As digital transformation accelerates across society and industry, the importance of computing infrastructure that supports AI adoption continues to grow. Through our ongoing discussions with Microsoft, we are exploring the potential to offer customers in Japan flexible AI infrastructure options that take operational requirements into account. Looking ahead, SAKURA internet will continue to contribute to the development of Japan’s digital society by strengthening digital infrastructure that can be used with confidence domestically.”
— Kunihiro Tanaka, Founder, CEO and President, SAKURA internet Inc.
The same “Japan’s terms” principle applies beyond hyperscale cloud, including customer-controlled infrastructure at the edge and on-premises. In February, Microsoft expanded Azure Local to support organisations with the most stringent governance and resilience requirements, including environments that are intermittently connected or completely disconnected from the public cloud. With Azure Local disconnected operations, customers can run mission-critical workloads on customer-controlled infrastructure while maintaining Azure-consistent governance and policy controls, helping keep operations running and controls enforceable even when connectivity is limited.
This governance-first approach also extends to software development: GitHub Enterprise Cloud now offers data residency in Japan, helping organisations with strict governance requirements keep code and repository data stored domestically.
Trust: Security and Trust as Foundations for Growth
Japan’s economic security priorities require partnerships with technology providers that operate at the level of national institutions. Microsoft’s partnerships with Japan’s cybersecurity and law enforcement bodies express that commitment directly.
Microsoft will continue to strengthen its collaboration with Japan’s National Cybersecurity Office through public‑private cooperation, including mutual threat intelligence sharing, to improve the early detection and prevention of cyberattacks across Japan’s public and private sectors. In addition, as AI and cloud technologies become more central to cybersecurity, Microsoft will apply its global experience with public‑private partnerships to support the adoption of AI and secure cloud solutions in Japan.
Microsoft is also deepening its collaboration with Japan’s National Police Agency (NPA) to help disrupt cybercrime and strengthen national cyber resilience. This work is led by Microsoft’s Digital Crime Unit (DCU), which brings global threat expertise and a track record of disrupting malicious infrastructure. Building on DCU’s recent collaboration with international law enforcement—including cooperation with the NPA and the Japan Cybercrime Control Center (JC3) to help dismantle transnational scam networks operating in India last year — this expanded collaboration strengthens joint efforts to identify and dismantle malicious infrastructure and sharpens operational coordination against evolving threats.
The Takaichi administration has identified science and technology as a national priority and has committed to a ¥60 trillion investment over five years to expand Japan’s science and technology base, including ongoing initiatives in AI for Science. Japan holds some of the world’s most irreplaceable scientific data across fields such as healthcare, materials science, manufacturing, energy, and the environment. Yet for many researchers, limitations in computing resources and access to AI‑ready infrastructure have constrained the scale and ambition of their work.
Microsoft will launch a $1 million research grant program to enable researchers in Japan to pursue large-scale AI analysis and simulation. Alongside this, a fellowship programme will help cultivate the next generation of research leaders, providing hands-on AI and digital transformation skills and fostering connections with the global scientific community drawing on Microsoft’s global AI research experience. Broader AI skilling programs will support researchers in integrating AI into their work and build core AI capabilities across Japan’s scientific community. Together, these initiatives are designed to ensure that Japan’s national investment in science translates into research breakthroughs rather than computing constraints.
“Keio University has collaborated with Microsoft across diverse fields over many years. In recent years, this collaboration has deepened through the promotion of AI-driven research and education, including advanced research conducted at the Keio AI Center since 2024 and a university-wide co-creation partnership launched in 2026. We expect that “AI for Science” will contribute to the advancement of research spanning not only science and engineering but also the humanities, social sciences, and interdisciplinary studies.”
— Kohei Itoh, President, Keio University
Talent: Workforce Readiness at National Scale
Over the last two years, Microsoft has helped more than 3.4 million people in Japan develop AI skills, exceeding the three million commitment made alongside the $2.9 billion investment announcement in 2024. That progress matters, but Japan’s workforce challenge is larger than any single programme. METI projects a shortfall of 3.26 million AI and robotics workers by 2040, and Microsoft’s Work Trend Index 2025 finds that 67 percent of Japanese executives already feel pressure to improve productivity while roughly 80 percent anticipate moving toward AI-human collaboration. The programmes announced today build on what has been achieved and go further, extending Microsoft’s skilling reach into Japan’s enterprise technology workforce and frontline industrial sectors.
In collaboration with Fujitsu, Hitachi, NEC, NTT Data, and SoftBank, Microsoft is committing to train one million engineers and developers in Japan by 2030. Training covers Microsoft Azure, Microsoft Foundry, GitHub, GitHub Copilot, and Microsoft 365 Copilot through online and hands-on formats. The five companies represent a significant share of Japan’s enterprise technology capacity. Working together, they will strengthen the pipeline of talent that will help power Japan’s long-term growth as AI adoption scales.
Through the Japanese Electrical Electronic and Information Union, a labour union representing Japan’s electrical, electronics, and information-related industries, Microsoft is creating access to foundational AI skilling opportunities for approximately 580,000 workers. A pilot launched in October 2025 is now scaling to a national programme. This partnership reaches the workers most affected by AI-related change in one of Japan’s most strategically important sectors, through an institution those workers already trust, helping to equip the existing workforce with the skills to adapt to technological change and support the long-term competitiveness of the industry.
“Reskilling and capacity building go beyond improving operational efficiency—they foster the personal growth of each individual union member. Digital literacy, and AI literacy in particular, is not a threat to employment. Rather, it is a powerful means of enhancing the quality of work and a foundation for building sustainable careers in rapidly changing industries. Through our partnership with Microsoft, we are able to deliver high-quality learning opportunities to a greater number of our members. We will continue to actively support career development, including the strengthening of AI literacy, and work to create an environment in which everyone can grow with confidence and peace of mind.”
— Masashi Jimbo, Japanese Electrical Electronic & Information Union President
Beyond the workforce, Microsoft is also supporting educators and nonprofits across Japan through Microsoft Elevate for Educators and Microsoft Elevate for Changemakers, extending AI skills and resources to the institutions that build long‑term social resilience.
Microsoft is expanding its CyberSmart AI Programme through the Kyushu Semiconductor Human Resource Development Consortium, becoming the first major international technology company to join the consortium. As Japan’s primary semiconductor hub, Kyushu plays a critical role in the country’s economic security and supply chain resilience. By partnering with the Consortium, Microsoft is supporting the development of AI and cybersecurity capabilities across local governments, enterprises, and educational institutions, helping to ensure that the semiconductor ecosystem has the skilled workforce needed to operate securely, adopt AI responsibly, and strengthen Japan’s semiconductor supply chain over the long term.
“In Kyushu, where investment by semiconductor-related companies has been accelerating in recent years, the Kyushu Semiconductor Human Resource Development Consortium is working to develop talent in the semiconductor industry and strengthen the supply chain. We welcome the participation of Microsoft Japan in the Consortium, as the company brings unparalleled resources, including pioneering education programs and advanced cybersecurity initiatives. With this participation as a starting point, we look forward to broad collaboration between Microsoft Japan and companies, educational institutions, and other stakeholders across the Kyushu region. As the Kyushu Semiconductor Human Resource Development Consortium, we will continue our efforts to cultivate the talent needed to help shape Japan’s future society through the semiconductor industry.”
— Kazutoshi Hokoya, Deputy Director, Kyushu Semiconductor Human Resource Development Consortium Secretariat
In 2024 Microsoft made a significant commitment to Japan. The announcements today show what that commitment looks like in practice: infrastructure built to operate on Japan’s terms, training programmes reaching workers across industries and regions, research partnerships supporting Japan’s national science agenda, and cybersecurity collaboration at the level of national institutions.
About Microsoft in Japan
Microsoft has operated in Japan for nearly half a century. In April 2024, Microsoft announced $2.9 billion in cloud and AI infrastructure investment in Japan, the first Microsoft Research Asia lab in Tokyo, and a commitment to skill more than three million people across Japan.
About Microsoft
Microsoft (Nasdaq “MSFT” @microsoft) creates platforms and tools powered by AI to deliver innovative solutions that meet the evolving needs of our customers. The technology company is committed to making AI available broadly and doing so responsibly, with a mission to empower every person and every organization on the planet to achieve more.
